Wallet-Native Asset Management Is the Next Frontier of Tokenization, Say Industry Leaders

The future of asset management will be wallet-native, not just digital, according to Sandy Kaul, head of innovation at Franklin Templeton. Speaking at the Ondo Summit in New York, Kaul said the financial industry is moving toward a model where all assets — including stocks, bonds, funds, and alternative investments — are held, managed, and interacted with directly through tokenized digital wallets.

Kaul explained that the long-term vision is for individuals and institutions to see the totality of their financial lives represented on-chain. In this model, wallets become the primary interface for ownership, portfolio management, and financial utility, enabling faster settlement, greater transparency, and global accessibility.

The discussion included senior leaders from major asset managers such as Fidelity, State Street, and WisdomTree, who agreed that tokenization has moved beyond theory. After years of pilot programs and limited adoption, blockchain infrastructure has matured enough to support real-world use cases. However, panelists emphasized that trust, education, and ecosystem development remain key challenges.

Cynthia Lo Bessette, head of digital asset management at Fidelity, noted that while creating a tokenized version of an asset is relatively straightforward, building meaningful utility around it is far more complex. Without strong secondary markets, collateral frameworks, and regulatory clarity, tokenized assets risk remaining niche products.

State Street’s Kim Hochfeld highlighted how tokenization could improve financial stability. She referenced the 2022 UK mini-budget crisis, arguing that tokenized funds could have been used as instant collateral, potentially reducing liquidity stress across the system. Despite these advantages, Hochfeld said adoption is still early, with much of the focus on experimentation and client education.

WisdomTree’s Will Peck added that interest is growing among crypto-native firms, particularly those managing stablecoin treasuries or seeking on-chain, yield-bearing assets. He compared today’s tokenization movement to the early days of ETFs, noting that widespread adoption often follows functionality rather than demand.

As universal liquidity layers develop on blockchain networks, asset managers are preparing for a future where tokenized investing is seamless, global, and largely invisible to the end user — but transformative for the financial system.